WallStSmart

GlaxoSmithKline PLC ADR (GSK)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 140% more annual revenue ($79.67B vs $33.20B). LLY leads profitability with a 33.5% profit margin vs 14.5%. LLY appears more attractively valued with a PEG of 1.11. LLY earns a higher WallStSmart Score of 76/100 (B+).

GSK

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.5Value: 4.0Quality: 4.5
Piotroski: 6/9Altman Z: 1.34

LLY

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GSKSignificantly Overvalued (-25.2%)

Margin of Safety

-25.2%

Fair Value

$46.73

Current Price

$50.22

$3.49 premium

UndervaluedFair: $46.73Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GSK5 strengths · Avg: 8.8/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Market CapQuality
$96.40B9/10

Large-cap with strong market position

Return on EquityProfitability
27.5%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.21B8/10

Generating 2.2B in free cash flow

LLY6 strengths · Avg: 9.7/10
Market CapQuality
$994.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
78.8%10/10

Every $100 of equity generates 79 in profit

Profit MarginProfitability
33.5%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
54.2%10/10

Strong operational efficiency at 54.2%

Revenue GrowthGrowth
47.7%10/10

Revenue surging 47.7% year-over-year

EPS GrowthGrowth
26.2%8/10

Earnings expanding 26.2% YoY

Areas to Watch

GSK4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.033/10

Elevated debt levels

PEG RatioValuation
5.722/10

Expensive relative to growth rate

EPS GrowthGrowth
-69.5%2/10

Earnings declined 69.5%

Altman Z-ScoreHealth
1.342/10

Distress zone — elevated risk

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.623/10

Elevated debt levels

Price/BookValuation
30.3x2/10

Trading at 30.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GSK

The strongest argument for GSK centers on Operating Margin, Market Cap, Return on Equity.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.

Bear Case : GSK

The primary concerns for GSK are Debt/Equity, PEG Ratio, EPS Growth.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

GSK profiles as a value stock while LLY is a growth play — different risk/reward profiles.

LLY carries more volatility with a beta of 0.50 — expect wider price swings.

LLY is growing revenue faster at 47.7% — sustainability is the question.

LLY generates stronger free cash flow (7.8B), providing more financial flexibility.

Bottom Line

LLY scores higher overall (76/100 vs 54/100), backed by strong 33.5% margins and 47.7% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

GlaxoSmithKline PLC ADR

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

GlaxoSmithKline plc is dedicated to the creation, discovery, development, manufacture and marketing of pharmaceuticals, vaccines, over-the-counter drugs and health-related consumer products in the UK, US and internationally. The company is headquartered in Brentford, the United Kingdom.

Eli Lilly and Company

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.

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